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How MRK’s and ABBV’s EPS Growth Compares

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May. 13 2019, Published 5:25 p.m. ET

EPS guidance

In its first-quarter press release, Merck (MRK) raised its GAAP fiscal 2019 EPS guidance from $3.97–$4.12 to $4.02–$4.14, and its non-GAAP EPS guidance from $4.57–$4.72 to $4.67–$4.79, which represents a YoY (year-over-year) increase of 8%–10%. The company expects currency exchange to have an EPS impact slightly lower than its previous forecast of 1.0%. In the first quarter, Merck’s non-GAAP EPS rose 16.19% YoY to $1.22, beating analysts’ estimate by $0.17.

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In its first-quarter press release, AbbVie (ABBV) reduced its fiscal 2019 GAAP diluted EPS guidance from $7.39–$7.49 to $7.26–$7.36, and raised its non-GAAP EPS guidance from $8.65–$8.75 to $8.73–$8.83, which represents an 11% YoY rise at the midpoint. In the first quarter, AbbVie’s non-GAAP EPS rose 14.44% YoY to $2.14, beating analysts’ estimate by $0.07.

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Wall Street estimates

Analysts expect Merck’s non-GAAP EPS to rise 9.26% YoY to $4.74 in fiscal 2019, 12.09% YoY to $5.32 in fiscal 2020, and 11.26% YoY to $5.91 in fiscal 2021. In fiscal 2019, they expect the company’s non-GAAP EPS to rise 8.02% YoY to $1.15 in the second quarter, 2.75% YoY to $1.22 in the third quarter, and 11.69% YoY to $1.16 in the fourth quarter.

Analysts expect AbbVie’s non-GAAP EPS to rise 11.42% YoY to $8.81 in fiscal 2019, 6.93% YoY to $9.42 in fiscal 2020, and 8.51% YoY to $10.23 in fiscal 2021. In fiscal 2019, they expect the company’s non-GAAP EPS to rise 10.35% YoY to $2.21 in the second quarter, 4.59% YoY to $2.24 in the third quarter, and 17.41% YoY to $2.23 in the fourth quarter of fiscal 2019. While AbbVie is expected to report higher absolute non-GAAP EPS between fiscal 2018 and fiscal 2021, Merck’s EPS are expected to grow more steeply.

 

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